BILL ANALYSIS



C.S.S.B. 20
By: Ellis (Siebert, Stiles)
May 16, 1995
Committee Report (Substituted)


BACKGROUND

State leaders have advocated the abolition of the state treasury as
a means to save taxpayers money, reduce duplicative efforts, and to
streamline government. 

PURPOSE

S.B. 20 abolishes the office of state treasurer and transfers the
treasurer's powers and duties to the state comptroller.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.  However, all current rulemaking authority of the office of
the state treasurer is transferred to the State Comptroller in
SECTION 2 of the bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 404A, Government Code, by adding Section
404.0011, as follows:

     Sec. 404.0011.  TRANSFER OF TREASURER'S POWERS AND DUTIES. 
     (a) Transfers the powers and duties of the state treasurer
     (treasurer) to the comptroller.
     
     (b) Provides that a reference in law to the treasurer is a
       reference to the comptroller.
       
       (c) Provides that if the treasurer and comptroller or their
       designees are both ex officio members of a committee or
       governing body, the transfer of powers and duties does not
       give the comptroller more than one vote or position on a
       committee or governing body.  Provides that if the treasurer
       and the comptroller both have the power to appoint members
       to a committee, the transfer of the powers and duties does
       not allow the comptroller to exercise the power of
       appointment given to the treasurer in addition to the power
       of appointment given to the comptroller.  Authorizes the
       comptroller, if the treasurer and comptroller both have the
       power to appoint members to a governing body, to exercise
       the power of appointment given to the treasurer in addition
       to the power of appointment given to the comptroller only if
       the members of the governing body serve six-year terms and
       the composition of the body is subject to Section 30a,
       Article XVI, Texas Constitution.
       
       (d) Authorizes the comptroller to contract with a private
       entity to perform a transferred activity as long as the
       activity is not a sovereign function of the state.
SECTION 2. (a) Abolishes the office of treasurer on September 1,
1997.  Transfers all powers, duties, obligations, rights,
contracts, leases, records, employees, property, and unspent and
unobligated appropriations and other funds of the treasurer to the
comptroller on that date.  Authorizes the comptroller with the
agreement of the treasurer to transfer any records, employees, or
property of the treasury to the comptroller in preparation for the
transfer.

     (b) Provides that the abolishment does not affect any action
     taken by or in connection with the treasurer.
     
     (c) Provides that all rules, policies, procedures, and
     decisions of the treasurer are continued in effect until
     superseded by an action or rule of the comptroller.
     
     (d) Transfers any action or proceeding before the treasurer
     without change in status to the comptroller, and the
     comptroller assumes the position of the treasurer in any
     action in which the treasurer is a party.
SECTION 3. Effective date:  September 1, 1997, if the
constitutional amendment abolishing the office of treasurer takes
effect.  Provides that this Act has no effect if that amendment
does not take effect.

SECTION 4. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute bill changes the abolition date and the effective
date from September 1, 1996 to September 1, 1997.

The substitute also deletes Section 3 relating to management of
TexPool. 

SUMMARY OF COMMITTEE ACTION

SB 20 was considered by the Committee on State Affairs in a public
hearing on May 1, 1995 to consider SB 20.  The chair laid out SB 20
and explained the bill.  The following persons testified neutrally
on the bill: Martha Whitehead representing herself and Mike Doyle
representing himself.  The following person testified against the
bill: James A. Cooley representing himself: James A. Cooley
representing himself.  The chair left SB 20 pending.  SB 20 was
considered by the Committee on State Affairs in a public hearing on
May 9, 1995.  The Chair laid out SB 20.  The committee considered
two amendments to the bill.  Two of those amendments were adopted
without objection.  The chair requested the staff to incorporate
the amendments into a complete substitute.  The substitute was
adopted without objection.  The bill was reported favorably as
substituted with the recommendation that it do pass and be printed
by a record vote of 9 ayes, 3 nays, 0 pnv, 3 absent.